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One Analysts View on the Potential Impact of Streaming on the Music Industry

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  • One Analysts View on the Potential Impact of Streaming on the Music Industry

    “Streaming music’s Total Addressable Market will be dependent not on the number of record stores or PCs, but on the three billion smartphones users, increasing to more than five billion around the world during the next five years, based on ARK estimates. Penetration of just 16% would deliver nearly 800 million subscribers and $50 billion in revenue.” The analyst cites data/figures from IFPI (ifpi.org) - a nonprofit out of Switzerland, which I’ve never heard of. No mention/inclusion of the notion of sound quality/fidelity in his thesis.

    https://ark-invest.com/research/musi...nue-50-billion
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  • #2
    Think of the IFPI as a supranational organization- a sort of international version of the RIAA in the US, though the US doesn't observe all international 'norms' like 'neighboring rights' or the sound recording performance right (which we only observe for digital audio transmissions as defined in our domestic copyright law-- the obligation to pay the record label and performers for the public performance of a recording).
    The conclusion sounds right to me-- the mainstream and large volume of users has very little to do with hi-fi. The bartender at our local restaurant plugs his portable device into the audio system in the place- voila- the music is from his playlist. The driver of the Uber car is often playing something from their phone thru the car sound system. And I suspect that much the same thing happens at home- no fancy system, or digital front end though I would expect more than a few have an outboard DAC, even if it is a modest device.
    The interesting thing to me -- and frankly, i have not studied it-- is whether the movement toward streaming services will allow the record companies (and by extension the music publishers and through both, the performers and composers) to side step the impact of the unpaid exchange of music through unauthorized digital proliferation. If the services are encrypted to control access or copying the content would arguably stay within the control of the service unless it permitted a download (for a fee). That would solve some of the problems the industry at large has suffered from since around the turn of the millennium.

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    • #3
      Well, I'm not a palm reader or MEDIUM, and it was easy for me to foresee this happening. I even mentioned it here somewhere else. Just take a look at the industry and you'll see all the past transactions has been buying Sirius, music licensing firms, etc. Regards!
      Sketsoteric Audio: "Analog Sound, Digital Flexibility"
      http://mortechpr.wixsite.com/cassetteadventures
      http://mortechpr.wixsite.com/cgmasteringservices

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      • #4
        I have noted on other forum while streaming is wonderful, music off my NAS or internal drive is better. Gets you to the place all the vinyl enthusiasts want to be. Now part of this may be my using a 1 box solution. Files via Tidal and Qobuz are FLAC. FLAC may be lossless but it requires decompression and that process absolutely changes the performance of playback. Now a 2 box system might not be as affected. A server decompressing FLAC and letting a second box/endpoint. ethernet render the signal to the DAC may step up streaming performance. Because of this, IMO Spotify, a very overlooked service remains very competitive in my mind. I actually like Spotify as a service better than Tidal or Qobuz. It has an excellent service where its predictive software serves up music I have never heard, but I end up adding to my favorites.

        Streaming sounds good. Very good. Being an audio freak like most here, I strive for superior performance. I don't see streaming there yet. But, its darn close enough no one with a phone or bose system is going to care.
        PAP Trio 10/Voxativ & PAP Trio 15 Horn speakers, Ampsandsound Casablanca monoblocks, First Sound Audio Mark 3SI Paramount preamp,
        Mojo Audio Deja Vu server, Mojo Audio Mystique V3 DAC, The Linear Solution Ethernet Switch, Blue Jeans Ethernet cablling,
        Akiko Corelli, Custom power strip direct wired to panel with OFC copper wire. Inakustik Ref Air 2404 Speaker cable. Genesis and Inakustik NF2404 Air Interconnects. ADDPower Symphony and Electraclear.

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        • #5
          https://www.theinquirer.net/inquirer...-an-ad-blocker

          spotify will ban your account if you use an add blocker
          PAP Trio 10/Voxativ & PAP Trio 15 Horn speakers, Ampsandsound Casablanca monoblocks, First Sound Audio Mark 3SI Paramount preamp,
          Mojo Audio Deja Vu server, Mojo Audio Mystique V3 DAC, The Linear Solution Ethernet Switch, Blue Jeans Ethernet cablling,
          Akiko Corelli, Custom power strip direct wired to panel with OFC copper wire. Inakustik Ref Air 2404 Speaker cable. Genesis and Inakustik NF2404 Air Interconnects. ADDPower Symphony and Electraclear.

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          • #6
            Originally posted by Kingrex View Post
            I have noted on other forum while streaming is wonderful, music off my NAS or internal drive is better. Gets you to the place all the vinyl enthusiasts want to be. Now part of this may be my using a 1 box solution. Files via Tidal and Qobuz are FLAC. FLAC may be lossless but it requires decompression and that process absolutely changes the performance of playback. Now a 2 box system might not be as affected. A server decompressing FLAC and letting a second box/endpoint. ethernet render the signal to the DAC may step up streaming performance. Because of this, IMO Spotify, a very overlooked service remains very competitive in my mind. I actually like Spotify as a service better than Tidal or Qobuz. It has an excellent service where its predictive software serves up music I have never heard, but I end up adding to my favorites.

            Streaming sounds good. Very good. Being an audio freak like most here, I strive for superior performance. I don't see streaming there yet. But, its darn close enough no one with a phone or bose system is going to care.
            The thing here Rex is you and I and the other audiophiles are just a speck in the huge streaming game. The a4ticle notes and I feel spot on, it’s the smartphones users these streaming companies are after, that’s were the major streaming dollars lie.
            Chris
            ----------------------------------------------------------------
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            • #7
              If it's not baloney news and 76% of the USA wants a 70% tax rate on the wealth, we may not have hifi any more to be concerned over streamed source quality. Anyone here young enough to remember the impact of the Luxury Tax.
              PAP Trio 10/Voxativ & PAP Trio 15 Horn speakers, Ampsandsound Casablanca monoblocks, First Sound Audio Mark 3SI Paramount preamp,
              Mojo Audio Deja Vu server, Mojo Audio Mystique V3 DAC, The Linear Solution Ethernet Switch, Blue Jeans Ethernet cablling,
              Akiko Corelli, Custom power strip direct wired to panel with OFC copper wire. Inakustik Ref Air 2404 Speaker cable. Genesis and Inakustik NF2404 Air Interconnects. ADDPower Symphony and Electraclear.

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              • #8
                Originally posted by Kingrex View Post
                If it's not baloney news and 76% of the USA wants a 70% tax rate on the wealth, we may not have hifi any more to be concerned over streamed source quality. Anyone here young enough to remember the impact of the Luxury Tax.
                YEP, From Wiki "This tax was levied on material goods such as watches, expensive furs, boats, yachts, private jet planes, jewelry and expensive cars.Congress enacted a 10 percent luxury surcharge tax on boats over $100,000, cars over $30,000, aircraft over $250,000, and furs and jewelry over $10,000 "

                Now if the govt starts taxing an item of audio equipment that sells over $10,000 well things could get interesting.
                Chris
                ----------------------------------------------------------------
                Kef 201/2, Pass xa30.5, W4S STP-SE, Manley Chinook, VPI Classic, Dynavector DV20x2L, ExaSound e32, Acoustic Zen cables. (Office): Vincent SP331 Mkll, Quicksilver Pre, Lumin D1, (Ken Lau Signiture Edition PSU), Bryston BCD-1, Vapor Audio Breeze, WooAudio W6se,Questyle Audio CMA800R LCD-3,HD800s, HD600, Mr Speaker Ether C Flow,

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                • #9
                  Originally posted by cpp View Post

                  YEP, From Wiki "This tax was levied on material goods such as watches, expensive furs, boats, yachts, private jet planes, jewelry and expensive cars.Congress enacted a 10 percent luxury surcharge tax on boats over $100,000, cars over $30,000, aircraft over $250,000, and furs and jewelry over $10,000 "

                  Now if the govt starts taxing an item of audio equipment that sells over $10,000 well things could get interesting.
                  PAP Trio 10/Voxativ & PAP Trio 15 Horn speakers, Ampsandsound Casablanca monoblocks, First Sound Audio Mark 3SI Paramount preamp,
                  Mojo Audio Deja Vu server, Mojo Audio Mystique V3 DAC, The Linear Solution Ethernet Switch, Blue Jeans Ethernet cablling,
                  Akiko Corelli, Custom power strip direct wired to panel with OFC copper wire. Inakustik Ref Air 2404 Speaker cable. Genesis and Inakustik NF2404 Air Interconnects. ADDPower Symphony and Electraclear.

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                  • #10
                    The luxury tax still exists. In the US, the NBA charges 150% to 500% (depending on the amount and whether you are a repeat offender) luxury tax to owners who spend over a certain amount on salaries for their players. It didn't stop many teams from going after players who pushed their payrolls over the luxury tax limit. Just depends on how much you want it. BTW, much of the luxury tax collected is redistributed to the financially poorer teams.

                    Now, back to the OP.

                    We're trying to teach our granddaughter (age 7) the difference between "want" and "need". We started with the toys she saw in the museum shop we were visiting. Does she really need that toy or only want it. I guess we should have her listen to Tidal vs Spotify - we have to train her early that hirez audio is something she "NEEDS!". :-)

                    Larry
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